FOR FCC RECORD ONLY
$//Century Cable TV, MO&O, DA-1627//$
$/76.922 Rates for Cable Programming Service tiers/$
$/benchmark cable rates/$
Before the
Federal Communications Commission
Washington, D.C.
DA 94-1627
In the matter of )
)
Century Cable TV )
)
Benchmark Filings To Support )
Cable Programming Service Prices )
Memorandum Opinion and Order
Adopted: December 30, 1994 Released: January 3, 1995
By the Chief, Cable Services Bureau:
Introduction
1. Here we consider complaints about the prices Century Cable TV ("Century")
charges for its cable programming service ("CPS") tiers in numerous communities around the
country (the "subject communities"). See Appendix for a list of the subject communities and
the number of basic and CPS channels Century offered in each community both before and
after September 1, 1993. Rather than attempting to justify its prices through a benchmark or
cost of service showing, Century responded to the complaints by stating that it has no CPS
tier in those systems. On December 21, 1994, Century submitted rate cards and channel line-
up cards in support of its claim that CPS tiers no longer exist in any of the subject
communities.
2. Under the Cable Television Consumer Protection and Competition Act of 1992,
and our rules implementing it, 47 C.F.R. Part 76, Subpart N, the Commission must review
CPS prices upon the filing of a valid complaint. The filing of a valid complaint triggers an
obligation on behalf of the cable operator to file a justification of its CPS prices. Under our
rules, an operator may attempt to justify its prices through either a benchmark showing or a
cost-of-service showing. In either case, the operator has the burden of demonstrating that its
CPS prices are not unreasonable.
3. The Commission's original rate regulations took effect on September 1, 1993. The
Commission subsequently revised its rate regulations effective May 15, 1994. Operators with
valid CPS complaints filed against them prior to May 15, 1994 must demonstrate that their
CPS prices were in compliance with the Commission's initial rules from the time the
complaint was filed through May 14, 1994, and that their prices were in compliance with the
revised rules from May 15, 1994 forward. Operators attempting to justify their prices for the
period prior to May 15, 1994 through a benchmark showing must complete and file FCC
Form 393. Generally, to justify their prices for the period beginning May 15, 1994 through a
benchmark showing, operators must use the FCC Form 1200 series.
Background
4. The Cable Services Bureau has released orders resolving letters of inquiry ("LOIs")
regarding Century's systems in Huntington, West Virginia; Morgantown, West Virginia;
Muncie, Indiana; Owensboro, Kentucky; Yuma, Arizona; Brunswick, Georgia; and San Juan,
Puerto Rico. Relying on the Commission's Going Forward Order, the Bureau's orders
addressed the restructured service offerings implemented in these communities beginning
September 1, 1993, in which Century eliminated its CPS tiers and offered instead only a basic
service tier and a few a la carte channels. In each of these orders, the Bureau found that
Century's restructured service offerings do not constitute a clear evasion of our rate rules.
Specifically, the Bureau found that Century did not avoid rate regulation of most of its
previous CPS channels because it moved those channels into a rate-regulated basic tier. With
regard to the other channels, the orders permit Century to treat its a la carte packages as new
product tiers that may be priced at market levels under the Going Forward Order.
5. Since the LOI orders found that the elimination of Century's CPS tiers does not
constitute a clear evasion of rate regulation and those channels not placed on the basic service
tier could be treated as a new product tier, there were no CPS tiers in those communities, as
of September 1, 1993, that were subject to rate regulation pursuant to Section 76.922 of our
rules. Therefore, the Bureau dismissed all FCC Form 329 complaints filed against Century in
each of those seven communities.
Discussion
6. The rate cards and channel line-up cards submitted by Century for each of the
subject communities indicate that Century restructured its service offerings in the subject
communities on September 1, 1993 in essentially the same way that it did for the seven areas
mentioned above where LOI orders have been issued. Specifically, Century discontinued its
CPS offerings and placed all of its channels into a single basic service tier, except for a few
channels which it offered on an a la carte basis. In the subject communities, Century offered
three to six a la carte channels. Likewise, Century's a la carte offerings consisted of three to
six channels in the above-mentioned areas where LOI orders have been issued.
7. We feel that we have sufficient information regarding Century's restructured
offerings in the subject communities to conclude, in accord with the Going Forward Order,
that they should be treated the same way that we treated Century's restructured offerings in
the seven communities where we issued LOI orders. As in these latter communities, although
the instant restructuring resulted in the elimination of Century's CPS tiers, the small number
of channels that were offered in the a la carte packages did not constitute an evasion of our
then existing rules. Therefore, consistent with the action taken in the LOI orders, we will
allow Century to treat its a la carte packages in the subject communities as new product tiers
even though they would not qualify as new product tiers under the Going Forward Order
because one of the conditions for a new product tier is that channels may not be removed
from a basic service tier or a CPS tier. Since there are no longer any CPS rates subject to
regulation, we need not rule on the FCC Form 329 complaints pending against Century in
these communities.
Conclusion
8. Accordingly, IT IS ORDERED that the a la carte packages created by Century
Cable TV in the communities listed in the attached Appendix may be treated as new product
tiers under our Going Forward Order.
9. IT IS FURTHER ORDERED that all FCC Form 329 complaints pending against
the CPS rates of Century Cable TV in each of the communities listed in the attached
Appendix are DISMISSED.
10. This action is taken pursuant to delegated authority under Section 0.321 of the
Commission's Rules, 47 C.F.R. 0.321.
FEDERAL COMMUNICATIONS COMMISSION
Meredith J. Jones
Chief, Cable Services Bureau APPENDIX
8/31/93 9/1/93
Pre-Regulation Post Regulation
CUID Community Basic Tiers Basic Tiers A la Carte
AL0025
City of Enterprise
11
22
29
0
3
AZ0019
City of Yuma
14
17
28
0
3
CA0117
Town of Yucca Valley
14
18
29
0
3
CA0018
City of La Habra
24
14
32
0
6
CA0016
City of Brea
27
14
38
0
6
CA0579
City of Redondo Beach
14
17
32
0
4
CT0110
Town of Old Lyme
17
16
29
0
4
CT0039
Town of Norwich
19
13
29
0
3
GA0119
County of Glynn
24
32
50
0
6
MS0024
City of Indianola
13
19
29
0
3
MS0021
City of Greenwood
13
22
32
0
3
NC0020
City of Laurinburg
14
16
27
0
3
NM0093
Village of Hatch
10
11
17
0
4
NM0085
County of Los Alamos
12
19
30
0
3
NM0013
City of Lovington
18
19
34
0
3
NM0022
City of Tucumcari
13
19
30
0
3
OH0100
City of Portsmouth
17
17
31
0
3
OH0400
Township of Brookfield
14
20
29
0
5
PA1439
City of Farrell
14
20
29
0
5
PA0485
City of Hermitage
14
20
29
0
5
PA0486
City of Sharon
14
20
29
0
5
PA0487
Borough of Sharpsville
14
20
29
0
5
PA2507
Township of Shenango
14
20
29
0
5
SC0010
City of Hartsville
14
19
30
0
3
WI0142
City of Waukesha
21
20
38
0
4
WI0350
Town of Pewaukee
21
20
38
0
4
WI0352
City of Port Washington
21
19
37
0
4
WI0131
City of Wauwatosa
21
20
38
0
4
WV0126
County of Cabell
15
18
30
0
3